Bowl America (BWL.A) 10-Q 13 Feb 19 2019 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Dec. 30, 2018	Feb. 09, 2019
Document Information [Line Items]
Entity Registrant Name	BOWL AMERICA INC
Entity Central Index Key	13,573
Trading Symbol	bwla
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Document Type	10-Q
Document Period End Date	Dec. 30, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		3,746,454
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		1,414,517

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Operating Revenues:
Operating revenue	$ 6,327,945	$ 6,368,522	$ 11,769,413	$ 11,632,275
Operating Expenses:
Employee compensation and benefits	2,761,736	2,720,700	5,503,389	5,404,571
Depreciation and amortization	246,800	238,026	478,930	474,110
General and administrative	223,579	229,403	431,239	436,031
Total Operating Expenses	5,260,493	5,270,542	10,462,209	10,337,920
Operating Income	1,067,452	1,097,980	1,307,204	1,294,355
Interest, dividend and other income	91,168	81,449	196,589	185,466
Change in value of investments	(432,113)		(193,835)
Earnings before provision for income taxes	726,507	1,179,429	1,309,958	1,479,821
Provision for income taxes (benefit)	169,065	(257,305)	312,135	(152,105)
Net Earnings	$ 557,442	$ 1,436,734	$ 997,823	$ 1,631,926
Earnings per share-basic & diluted (in dollars per share)	$ 0.11	$ 0.28	$ 0.19	$ 0.32
Weighted average shares outstanding (in shares)	5,160,971	5,160,971	5,160,971	5,160,971
Dividends paid	$ 903,170	$ 877,365	$ 1,780,535	$ 1,754,730
Common Class A [Member]
Operating Expenses:
Per share, dividends paid (in dollars per share)	$ 0.175	$ 0.17	$ 0.345	$ 0.34
Common Class B [Member]
Operating Expenses:
Per share, dividends paid (in dollars per share)	$ 0.175	$ 0.17	$ 0.345	$ 0.34
Bowling and Other [Member]
Operating Revenues:
Operating revenue	$ 4,409,647	$ 4,484,745	$ 8,242,938	$ 8,233,015
Operating Expenses:
Cost of goods and services sold	1,506,687	1,508,075	3,043,433	2,975,983
Food, Beverage, and Merchandise [Member]
Operating Revenues:
Operating revenue	1,918,298	1,883,777	3,526,475	3,399,260
Operating Expenses:
Cost of goods and services sold	$ 521,691	$ 574,338	$ 1,005,218	$ 1,047,225

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Net earnings	$ 557,442	$ 1,436,734	$ 997,823	$ 1,631,926
Other comprehensive earnings- net of tax
Unrealized gain on available- for-sale securities net of tax of $598 for 13 weeks and $91,192 for 26 weeks		1,775		148,960
Reclassification adjustment for gain included in Net Income net of tax of $2,167				(3,520)
Comprehensive earnings	$ 557,442	$ 1,438,509	$ 997,823	$ 1,777,366

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Earnings (Unaudited) (Parentheticals) - USD ($)	3 Months Ended	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2017
Unrealized gain on available-for-sale securities, tax	$ 598	$ 91,192
Reclassification adjustment for gain included in net gain, tax		$ 2,167

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Dec. 30, 2018	Jul. 01, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 1,639,081	$ 1,008,433
Short-term investments	232,972	333,029
Marketable investment securities	6,475,527	6,641,650
Inventories	562,571	490,456
Prepaid expenses and other	152,124	760,561
Income taxes refundable	207,898	192,298
TOTAL CURRENT ASSETS	9,270,173	9,426,427
LAND, BUILDINGS & EQUIPMENT, net of accumulated depreciation of $41,524,358 and $41,264,023	18,528,317	18,698,651
OTHER ASSETS:
Cash surrender value-life insurance	717,733	717,733
Other	66,315	66,315
TOTAL OTHER ASSETS	784,048	784,048
TOTAL ASSETS	28,582,538	28,909,126
CURRENT LIABILITIES:
Accounts payable	465,584	806,487
Accrued expenses	610,063	1,107,226
Dividends payable	903,170	877,365
Other current liabilities	1,665,731	305,236
TOTAL CURRENT LIABILITIES	3,644,548	3,096,314
LONG-TERM DEFERRED COMPENSATION		17,440
DEFERRED INCOME TAXES	1,262,832	1,311,697
TOTAL LIABILITIES	4,907,380	4,425,451
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, par value $10 a share: Authorized and unissued, 2,000,000 shares
Additional paid-in capital	7,854,108	7,854,108
Accumulated other comprehensive earnings- Unrealized gain on available-for-sale securities, net of tax		2,102,745
Retained earnings	15,304,953	14,010,725
TOTAL STOCKHOLDERS' EQUITY	23,675,158	24,483,675
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	28,582,538	28,909,126
Common Class A [Member]
STOCKHOLDERS' EQUITY
Common Stock	374,645	374,645
Common Class B [Member]
STOCKHOLDERS' EQUITY
Common Stock	$ 141,452	$ 141,452

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Dec. 30, 2018	Jul. 01, 2018
Land, buildings, and equipment, accumulated depreciation	$ 41,524,358	$ 41,264,023
Preferred stock, par value (in dollars per share)	$ 10	$ 10
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common Class A [Member]
Common stock, shares issued (in shares)	3,746,454	3,746,454
Common stock, shares outstanding (in shares)	3,746,454	3,746,454
Common Class B [Member]
Common stock, shares issued (in shares)	1,414,517	1,414,517
Common stock, shares outstanding (in shares)	1,414,517	1,414,517

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017
Cash Flows From Operating Activities
Net earnings	$ 997,823	$ 1,631,926
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	478,930	474,110
Decrease in deferred taxes	(48,865)
Unrealized loss on marketable securities	193,835
Net purchases of marketable securities	(27,712)
Gain on sale of available-for-sale securities		(8,531)
Provisional estimate for reduction in deferred tax from tax act		(604,190)
Changes in assets and liabilities
Increase in inventories	(72,115)	(19,493)
Decrease in prepaid & other	608,437	42,905
Decrease in accounts payable	(340,903)	(201,480)
Increase in income taxes refundable	(15,600)
Decrease in accrued expenses	(497,163)	(407,120)
Decrease in income taxes payable		(48,115)
Decrease in long-term deferred compensation	(17,440)
Increase in other current liabilities	1,360,495	1,288,798
Net cash provided by operating activities	2,619,722	2,148,810
Cash Flows From Investing Activities
Expenditures for land, building and equipment	(308,596)	(676,271)
Net sales & maturities (purchases) of short-term investments	100,057	(42)
Proceeds from sale of available-for-sale securities		1,000,000
Purchases of marketable securities		(28,804)
Net cash (used in) provided by investing activities	(208,539)	294,883
Cash Flows From Financing Activities
Payment of cash dividends	(1,780,535)	(1,754,730)
Net cash used in financing activities	(1,780,535)	(1,754,730)
Net Increase in Cash and Equivalents	630,648	688,963
Cash and Equivalents, Beginning of period	1,008,433	604,671
Cash and Equivalents, End of period	1,639,081	1,293,634
Supplemental Disclosures of Cash Flow Information Cash Paid During the Period for:
Interest
Income taxes	$ 376,600	$ 500,200

Note 1 - Basis for Presentation

Note 1 - Basis for Presentation	6 Months Ended
	Dec. 30, 2018
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	1. The accompanying unaudited condensed consolidated financial statements of Bowl America Incorporated and subsidiaries (the "Company"), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The condensed consolidated balance sheet as of July 1, 2018 not In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments and reclassifications (all of which are of a normal, recurring nature) that are necessary for the fair presentation of the Company’s financial position and results of operations for the periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's annual report on Form 10 July 1, 2018.

Note 2 - Investments

Note 2 - Investments	6 Months Ended
	Dec. 30, 2018
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	2. The Company’s investments are categorized as current assets. Short-term investments consist of certificates of deposits and treasury bills with maturities of generally three one December 30, 2018 July 1, 2018 Decem ber 30 , 201 8 Description Fair Value Cost basis Unrealized Gain (Loss) Certificates of deposits and Treasury Bills $ 232,972 $ 232,972 $ - Equity securities $ 4,622,784 $ 1,279,914 $ 3,342,870 Mutual funds $ 1,852,743 $ 1,892,008 $ (39,265 ) Ju ly 1 , 201 8 Description Fair Value Cost basis Unrealized Gain Certificates of deposits $ 333,029 $ 333,029 $ - Equity securities $ 4,816,804 $ 1,279,914 $ 3,536,890 Mutual funds $ 1,824,846 $ 1,864,296 $ (39,450 ) The fair values of the Company’s investments were determined as follows: Dec ember 30, 2018 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits and Treasury Bills $ - $ 232,972 $ - Equity securities 4,622,784 - - Mutual funds 1,852,743 - - Total $ 6,475,527 $ 232,972 $ - July 1, 2018 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 333,029 $ - Equity securities 4,816,804 - - Mutual funds 1,824,846 - - Total $ 6,641,650 $ 333,029 $ - The equity securities portfolio includes the following stocks: AT&T shares 82,112 Manulife shares 2,520 Uniti shares 815 NCR shares 774 Teradata shares 774 Vodafone shares 6,471 CenturyLink shares 4,398 Frontier Communications shares 300 Sprint shares 40,000 Verizon shares 31,904 Windstream shares 135 On May 25, 2018, 1 5 135 July 10, 2017, 1 15 300 4,508. The Mutual fund included in the table above is Vanguard GNMA Admiral Shares #536

Note 3 - Commitments and Contin

Note 3 - Commitments and Contingencies	6 Months Ended
	Dec. 30, 2018
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	3. The Company’s purchase commitments at December 30, 2018, October 26, 2018 $1,100,000,

Note 4 - Employee Benefit Plans

Note 4 - Employee Benefit Plans	6 Months Ended
	Dec. 30, 2018
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	4. The Company has two no

Note 5 - New Accounting Standar

Note 5 - New Accounting Standards	6 Months Ended
	Dec. 30, 2018
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	5. In January 2016, July 2, 2018. Amount Accumulated other comprehensive earnings, 7/2/2018 $ 2,102,745 Reclassification to retained earnings of cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, net of tax $1,394,695 (2,102,745 ) Accumulated other comprehensive earnings as adjusted, 7/2/2018 - Retained earnings, 7/2/2018 14,010,725 Reclassification from accumulated other comprehensive income of cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, net of tax, $1,394,695 2,102,745 Retained earnings as adjusted, 7/2/2018 $ 16,113,470 In February 2016, 12 June 2020 In May 2014, No. 2014 09, 2014 09” 2014 9 may December 15, 2017. not December 15, 2016. July 2, 2018 no

Note 6 - Reclassifications

Note 6 - Reclassifications	6 Months Ended
	Dec. 30, 2018
Notes to Financial Statements
Reclassifications [Text Block]	6. Certain previous year amounts have been reclassified to conform with current year presentation.

Note 2 - Investments (Tables)

Note 2 - Investments (Tables)	6 Months Ended
	Dec. 30, 2018
Notes Tables
Available-for-sale Securities [Table Text Block]	Decem ber 30 , 201 8 Description Fair Value Cost basis Unrealized Gain (Loss) Certificates of deposits and Treasury Bills $ 232,972 $ 232,972 $ - Equity securities $ 4,622,784 $ 1,279,914 $ 3,342,870 Mutual funds $ 1,852,743 $ 1,892,008 $ (39,265 ) Ju ly 1 , 201 8 Description Fair Value Cost basis Unrealized Gain Certificates of deposits $ 333,029 $ 333,029 $ - Equity securities $ 4,816,804 $ 1,279,914 $ 3,536,890 Mutual funds $ 1,824,846 $ 1,864,296 $ (39,450 )
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	Dec ember 30, 2018 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits and Treasury Bills $ - $ 232,972 $ - Equity securities 4,622,784 - - Mutual funds 1,852,743 - - Total $ 6,475,527 $ 232,972 $ - July 1, 2018 Description Quoted Price for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Certificates of deposits $ - $ 333,029 $ - Equity securities 4,816,804 - - Mutual funds 1,824,846 - - Total $ 6,641,650 $ 333,029 $ -
Schedule Of Telecommunications Stocks Held [Table Text Block]	AT&T shares 82,112 Manulife shares 2,520 Uniti shares 815 NCR shares 774 Teradata shares 774 Vodafone shares 6,471 CenturyLink shares 4,398 Frontier Communications shares 300 Sprint shares 40,000 Verizon shares 31,904 Windstream shares 135

Note 5 - New Accounting Stand_2

Note 5 - New Accounting Standards (Tables)	6 Months Ended
	Dec. 30, 2018
Notes Tables
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	Amount Accumulated other comprehensive earnings, 7/2/2018 $ 2,102,745 Reclassification to retained earnings of cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, net of tax $1,394,695 (2,102,745 ) Accumulated other comprehensive earnings as adjusted, 7/2/2018 - Retained earnings, 7/2/2018 14,010,725 Reclassification from accumulated other comprehensive income of cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, net of tax, $1,394,695 2,102,745 Retained earnings as adjusted, 7/2/2018 $ 16,113,470

Note 2 - Investments (Details T

Note 2 - Investments (Details Textual)	May 25, 2018shares	Jul. 10, 2017shares	Dec. 30, 2018shares	Jul. 09, 2017shares
Windstream [Member]
Investment Owned, Balance, Shares	135		135
Frontier Communications [Member]
Investment Owned, Balance, Shares		300	300	4,508
Windstream [Member] | Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	5
Frontier Communications [Member] | Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio		15

Note 2 - Investments - Summary

Note 2 - Investments - Summary of Investments (Details) - USD ($)	Dec. 30, 2018	Jul. 01, 2018
Certificates of Deposit and Treasury Bill [Member]
Fair Value	$ 232,972
Cost Basis	232,972
Unrealized Gain
Equity Securities [Member]
Fair Value	4,622,784	$ 4,816,804
Cost Basis	1,279,914	1,279,914
Unrealized Gain	3,342,870	3,536,890
Mutual Fund [Member]
Fair Value	1,852,743	1,824,846
Cost Basis	1,892,008	1,864,296
Unrealized Loss	$ (39,265)	(39,450)
Certificates of Deposit [Member]
Fair Value		333,029
Cost Basis		333,029
Unrealized Gain

Note 2 - Investments - Fair Val

Note 2 - Investments - Fair Value Hierarchy (Details) - USD ($)	Dec. 30, 2018	Jul. 01, 2018
Fair Value, Inputs, Level 1 [Member]
Fair Value Hierarchy	$ 6,475,527	$ 6,641,650
Fair Value, Inputs, Level 2 [Member]
Fair Value Hierarchy	232,972	333,029
Fair Value, Inputs, Level 3 [Member]
Fair Value Hierarchy
Certificates of Deposit and Treasury Bill [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Hierarchy
Certificates of Deposit and Treasury Bill [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Hierarchy	232,972
Certificates of Deposit and Treasury Bill [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Hierarchy
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Hierarchy
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Hierarchy		333,029
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Hierarchy
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Hierarchy	4,622,784	4,816,804
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Hierarchy
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Hierarchy
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Hierarchy	1,852,743	1,824,846
Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Hierarchy
Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Hierarchy

Note 2 - Investments - Telecomm

Note 2 - Investments - Telecommunications Stocks Held (Details) - shares	Dec. 30, 2018	May 25, 2018	Jul. 10, 2017	Jul. 09, 2017
ATT [Member]
Investment (in shares)	82,112
Manulife [Member]
Investment (in shares)	2,520
Uniti Shares [Member]
Investment (in shares)	815
NCR [Member]
Investment (in shares)	774
Teradata [Member]
Investment (in shares)	774
Vodafone [Member]
Investment (in shares)	6,471
CenturyLink [Member]
Investment (in shares)	4,398
Frontier Communications [Member]
Investment (in shares)	300		300	4,508
Sprint [Member]
Investment (in shares)	40,000
Verizon [Member]
Investment (in shares)	31,904
Windstream [Member]
Investment (in shares)	135	135

Note 3 - Commitments and Cont_2

Note 3 - Commitments and Contingencies (Details Textual)	Oct. 26, 2018USD ($)
Land Sale Commitment, Sale Price	$ 1,100,000

Note 4 - Employee Benefit Pla_2

Note 4 - Employee Benefit Plans (Details Textual)	6 Months Ended
	Dec. 30, 2018
Defined Contribution Plan Number of Plans	2

Note 5 - New Accounting Stand_3

Note 5 - New Accounting Standards - Impact of Adoption on AOCI and Retained Earnings (Details) - USD ($)	Dec. 30, 2018	Jul. 02, 2018	Jul. 01, 2018
Balance as of 7/2/2018	$ 23,675,158		$ 24,483,675
AOCI Attributable to Parent [Member] | Accounting Standards Update 2016-01 [Member]
Balance as of 7/2/2018		$ 2,102,745
Reclassification to retained earnings of cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, net of tax $1,394,695		(2,102,745)
Adjusted balance as of 7/2/2018
Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member]
Balance as of 7/2/2018		14,010,725
Reclassification to retained earnings of cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, net of tax $1,394,695		2,102,745
Adjusted balance as of 7/2/2018		$ 16,113,470

Note 5 - New Accounting Stand_4

Note 5 - New Accounting Standards - Impact of Adoption on AOCI and Retained Earnings (Details) (Parentheticals) - Accounting Standards Update 2016-01 [Member]	Jul. 02, 2018USD ($)
AOCI Attributable to Parent [Member]
Reclassification to cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, tax	$ 1,394,695
Reclassification of cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, tax	(1,394,695)
Retained Earnings [Member]
Reclassification to cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, tax	(1,394,695)
Reclassification of cumulative effect adjustment to initially apply new accounting guidance for equity investments which were previously classified as available-for-sale, tax	$ 1,394,695